i think it's all over, page-63

Hi f111,

From my experience I agree with all that you have posted. Dealing with syndicated loans can very interesting when things start to go "pear shape".

It would be interesting to know the details of how the banks documented how they would handle "breaches to the syndicated loan agreement".



Hi PV,

My apologies for the delayed reply. Tied up in meetings.

As to your question:

"However, how would a covenant be defined to be triggered on normalised EBITDA?"

In the Loan Agreement there may be what are known as "Change of Circumstances Clauses".

Change of Circumstances Clauses:

these clauses are designed to deal with problems that may arise during the course of a loan transaction. In particular the purpose of these clauses is to define possible events that may occur in the future and establish their consequences. These clauses include the events of default, the change of circumstances clauses and the clauses dealing with dispute resolution.


As f111 pointed out in his/her post:

"A look fwd on expected EBITDA would pick up the next period - i.e. normalised."

This would be an example of a Change of Circumstances Clauses.


As stated before anything posted at this point is pure speculation. Once we receive announcement(s) we should have a better understanding of how BBP will proceed going forward.

Good luck to all.

Cheers,
Brantley